Malawi’s Tea Sector Slumps: 59% Decline in November Output Sparks Concern for Businesses and Investors

Key Business Points

• Tea output in Malawi has dropped by 59 percent to 900,000 kg in December 2025, resulting in lower earnings despite a marginal increase in average price, which is a crucial point for business owners and entrepreneurs to consider when mapping their mtengowoyenera (business strategies).
• Weather-related factors have affected tea development, with dry weather conditions impacting production over the past five months, highlighting the need for kupanga zipangizo (planning and risk management) in the tea industry.
• Initiatives are underway to boost tea output by strengthening smallholder institutions and introducing modern varieties and technologies, which could lead to ethical tea production and new market opportunities, making it essential for local entrepreneurs to explore kujitolea kwa ajili ya maendeleo (participation in development initiatives).

The tea industry in Malawi has experienced a significant decline in output, with production dropping by 59 percent in December 2025 to 900,000 kg. This decrease has resulted in lower earnings, despite a marginal increase in average price. According to the Reserve Bank of Malawi (RBM), the decline in output was below the 3.2 million kg produced in the corresponding period last year. The RBM Monthly Economic Review for November 2025 notes that tea sales declined marginally to 611,900 kg, with the average price of tea slightly rising to $1.13 per kg.

The Tea Association of Malawi (Taml) attributes the low output to weather-related factors, specifically dry weather conditions that affect tea development. However, the industry expects improvements during the rainy season due to good weather conditions. Taml chief executive officer Tonda Chinangwa explains that this is a normal annual production trend in Malawi, with production typically higher in the first quarter and dropping during the second and third quarters before picking up again in the fourth quarter.

To address the decline in tea output, initiatives are underway to boost production by strengthening smallholder institutions. Trust Africa programme officer Beatrice Makwenda notes that the tea sector is working towards improving production and productivity by strengthening smallholder institutions. The changes in industry practice, coupled with research programs targeting modern varieties and technologies, are expected to result in thandizo la kalumo (sustainable production) that will sustain current markets and open new opportunities.

The tea industry is a significant contributor to Malawi’s economy, accounting for about eight percent of foreign exchange earnings and 11 percent of total national employment. With over 60,000 temporary and permanent workers employed in the industry, any improvements in production and productivity will have a positive impact on the economy. As Taml board chairperson Sangwani Hara notes, enhanced trade can provide a good alternative to aid and development assistance through increased exports, highlighting the need for malonda a zipatso (value addition) in the tea industry to increase its competitiveness in the global market.

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